SmarterDividends

CAT vs OC: Which Is the Better Dividend Stock?

As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. OC offers the higher yield at 2.57%, CAT has the higher dividend-safety score, and CAT trades at the larger discount to fair value (-39%).

MetricCATOC
Forward yield0.80%2.57%
Annual dividend$6.52$3.16
Payout ratio26%32%
Years of growth32 yr11 yr
5-yr dividend growth7.2%23.5%
5-yr total return297%33%
Dividend safety score92 (A)82 (A)
Fair value estimate$492.78$57.87
Upside to fair value-39%-53%
Frequencyquarterlyquarterly
Market cap$366.0B$9.6B
P/E ratio34.3—

Higher yield

OC

2.57%

Safer dividend

CAT

Grade A

Faster growth

OC

23.5%

Better value

CAT

-39% upside

CAT vs OC — FAQ

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